In the majority of transactions, U.S. Capital Realty Trust will elect to invest the firm’s discretionary capital along with the capital of their partners. This is done through direct investments in which U.S. Capital Realty Trust maintains a 100% ownership interest or with quality sponsors where the investment is in the General Partner Tranche of the capital stack. An ideal sponsor for this program has a proven track record with a quality management team in place. U.S. Capital Realty Trust's goal is to create long-term, mutually beneficial relationships with active operators looking to dramatically grow their existing platforms.

Deal Structure

The waterfall structure is dependent upon the investment; however, U.S. Capital Realty Trust will typically fund 25% to 95% of the required G.P. Co-Investment. In exchange for contributing capital, U.S. Capital Realty Trust will share in a portion of the promoted interest received by the Sponsor from the Limited Partner(s). When applicable, the Sponsor will retain the market-related fees associated with the transaction. The Sponsor also is responsible for signing any and all required loan-related guarantees and/or covenants.

Investment Strategy

Benefits to Sponsors

When U.S. Capital Realty Trust acts as a Co-Investment partner, Sponsors are able to leverage their available capital across a variety of investment opportunities.

U.S. Capital Realty Trust has an industry leading database of capital providers who contribute passive and promotable limited-partner capital that Co-Investment partners can access through collaboration with U.S Capital Realty Trust.

Sponsors will gain a partner who has transacted billions of dollars in multiple asset classes throughout the capital stack; U.S Capital Realty Trust will also serve as a strategic advisor and act as an additional resource.

Deal Criteria

Acquisition and recapitalization of existing income-producing real estate assets as well as ground-up development. The acquisition of first-lien debt in an effort to gain fee-simple interest will also be considered.

Opportunistic and Value-Add Acquisitions with a minimum of a mid-teens project level IRR over a three- to five-year holding period.

Leverage Profile: 65% to 80% Loan-to-Value ratio.

Geographic Criteria

Continental United States, with an emphasis on New York City, Los Angeles, San Francisco, Boston, Miami, Dallas and Austin.